Case Law[2025] ZAWCHC 25South Africa
Matamela Enterprise CC v George Municipality and Others (24/146973) [2025] ZAWCHC 25 (28 January 2025)
Headnotes
from 2004 to 2011 as a site agent.
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## Matamela Enterprise CC v George Municipality and Others (24/146973) [2025] ZAWCHC 25 (28 January 2025)
Matamela Enterprise CC v George Municipality and Others (24/146973) [2025] ZAWCHC 25 (28 January 2025)
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sino date 28 January 2025
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
(WESTERN
CAPE DIVISION, CAPE TOWN)
Case
No: 24-146973
In
the matter
between:
MATAMELA
ENTERPRISE CC
Applicant
And
GEORGE
MUNICIPALITY
First
Respondent
MEC
FOR INFRSTRUCTURE, CAPE TOWN
Second
Respondent
SOUTH
AFRICAN LOCAL GOVERNMNET
ASSOCIATION
(SALGA)
Third
Respondent
NOKHANYS
SERVICES (PTY) LTD
Fourth
Respondent
MEC
FOR LOCAL GOVERNMENT,
ENVIRONMENTAL
AFFAIRS AND
DEVELOPMENT
PLANNING
Fifth
Respondent
Heard:
20 December 2024
Delivered:
Electronically on 28 January 2025
JUDGMENT
LEKHULENI
J
Introduction
[1]
This is an urgent application for an interdict. The application is
divided into two
parts, Part A and B. In Part A, the applicant seeks
an order that, pending the final determination of the review
application in
Part B, the first respondent
("the
Municipality")
be interdicted from taking any further steps
towards implementing the appointment of a building contractor to
construct 100 subsidised
houses in Thembalethu in accordance with
Contract Number: HS 017/24
("the tender").
[2]
The applicant also seeks an order that the Municipality be
interdicted from appointing
the fourth respondent as the preferred
bidder and giving effect to the tender. In addition, the applicant
seeks an order that the
Municipality be directed to re-evaluate the
tender bidding of the applicant by properly assessing the years of
experience of the
applicant's Construction Manager as stated in his
CV, particularly the position he has held from 2004 to 2011 as a site
agent.
[3]
In Part B, the applicant seeks an order that the decision taken by
the Municipality
on 19 September 2024 to award the tender to the
fourth respondent be declared unlawful and that it be reviewed and
set aside in
terms of the Promotion of Administrative Justice Act 3
of 2000
("PAJA"),
alternatively the principle of
legality. The applicant also seeks an order in Part B that any award
and or subsequent service level
agreement that may have been
concluded between the Municipality and the fourth respondent
pertaining to the tender be declared
unlawful and that it be reviewed
and set aside. This Court is only enjoined in deciding Part A of this
application.
The
Applicant’s Case
[4]
The George Municipality advertised a tender on 11 July 2024, calling
upon bidders
to submit their bidding documentation for the
appointment of a building contractor to construct 100 subsidised
houses in Thembalethu.
The closing date of the said tender was 16
August 2024. Subsequent thereto, 26 bidders submitted their bidding
documentation. The
applicant asserts that it submitted the required
documentation together with other bidders. The evaluation process was
conducted,
resulting in a decision to award the tender to Nokhanya
Services (Pty) Ltd, the fourth respondent in this matter. An official
intention
to award the tender to the fourth respondent was
communicated to the respective bidders.
[5]
The applicant stated that the tender award process occurs in two
phases. First, an
intention to award the contract to a specific
bidder is announced. Second, a fourteen-day (14) period is allowed
during which any
bidding party can object to the intended award.
[6]
During the fourteen-day period objections were allowed to be noted,
the applicant
objected to awarding the tender to the fourth
respondent. The applicant believed that the Municipality acted
irrationally in its
evaluation process in awarding the tender to the
fourth respondent. The reason given to the applicant by the
Municipality for not
awarding the tender to the applicant was that
the applicant failed to comply with the requirements of the tender.
The tender requirement
of the Municipality requires that a bidder for
the tender must have a construction manager with 10 years of
experience in construction.
[7]
The applicant states that the Municipality rejected the applicant's
application and
alleged that the CV of the applicant's Construction
Manager, Mr T Fhumulani, attached to the applicant's tender
documents, revealed
that Mr Fhumulani only had 8 years of building
projects experience. In the notice informing the applicant of the
reasons for rejecting
his tender application, the Municipality
asserted that the applicant failed to submit the required information
and could, therefore,
not be considered further in the bidding
evaluation process.
[8]
The applicant emphasised that on the tender documentation it
submitted, there was
a returnable document on which the applicant
listed five projects within the provided spaces, capturing a portion
of its Construction
Manager’s experience. Due to the limited
space on the returnable document, it was not possible to detail Mr
Fhumulani’s
relevant project experience over the past ten years
within this section alone. To address this problem, the applicant
included
in its tender documents the CV of Mr Fhumulani, its
Construction Manager, which provided a complete record of his
professional
experience, authenticating that he had over 10 years of
experience in construction management.
[9]
According to the applicant, limiting the assessment to the returnable
form’s
constrained layout without considering the supplementary
documentation resulted in an inaccurate and incomplete evaluation of
Mr
Fhumulani's experience. The applicant asserted that the
Municipality excluded Mr Fhumulani's 2004 to 2011 experience as a
site
agent, which appears on his CV. If this experience had been
considered, the Municipality would have possibly awarded the tender
to the applicant as a successful tenderer. The applicant averred that
prior to the 2014 Regulations, a Construction Manager was
referred to
as a site agent.
[10]
In the applicant's view, Mr Fhumulani's experience gained from 2004
to 2011 had to be considered,
and the fact that it was not considered
proves that the process was irregular and must be reviewed and set
aside by this Court.
Had the respondent considered Mr Fhumulani's
2004 to 2011 experience, the applicant asserts that it would have met
the 10-year
experience criteria and would have possibly been awarded
the tender. The applicant stated that Mr Fhumulani has 17 years of
experience
as a Construction Manager.
[11]
According to the applicant, the failure to adequately consider its
Construction Manager’s
experience despite demand and an Appeal
of the applicant demonstrates an intention on the part of the
Municipality to unlawfully
deprive the applicant of what would have
been a lawful appointment. Furthermore, the applicant contended that
the Municipality's
memo stating that the applicant’s reference
letter from the Western Cape Department of Human Settlement was not
specific
was incorrect. The applicant refuted these allegations and
stated that it included an adequate reference letter from the Western
Cape Department of Human Settlement as part of its tender documents
submitted to the Municipality.
[12]
The applicant disputed the Municipality's claims set out in the
rejection letter. In the letter
rejecting the applicant’s
appeal, the Municipality pointed out that Mr Fhumulani's CV listed
him as a Senior Project Manager,
while some of the applicant's bid
documents referred to him as a Construction Manager. The applicant
emphasised that Mr Fhumulani's
experience as both a Construction
Manager and a Senior Project Manager was crucial, as senior project
management experience is
necessary for this tender.
[13]
The applicant asserted that the process the Municipality invoked is
invalid and unlawful and,
as such, establishes the grounds for review
listed in section 6 of PAJA. The applicant contended that the process
was flawed, affecting
the validity of the entire tender process. The
non-consideration of Mr Fhumulani's experience offends the right to
just administrative
action, which is lawful, reasonable and
procedurally fair and thus is subjected to review based on PAJA,
alternatively, the principle
of legality. According to the applicant,
this would ensure that the applicant's right in terms of section 33
of the Constitution
of the Republic of South Africa is protected.
[14]
The applicant further asserted that the Municipality failed to
conduct the entire bidding process
in line with the constitutional
provisions set out in section 217 of the Constitution, specifically
concerning the evaluation of
the applicant's tender documents. In the
applicant's view, the Municipality manipulated the tendering process
to bring about an
unlawful favour of another bidder. Based on these
concerns, the applicant respectfully pleaded with this Court to
interdict the
Municipality from making the final award to the fourth
respondent pending the review application in Part B of this
application.
To this end, the applicant prayed that the court grant
the interdictory relief sought in the Notice of Motion.
The
Municipality’s Case
[15]
The Municipality opposed the applicant's application and raised
several preliminary issues. The
Municipality asserted that the
applicant has failed to make out its case on the papers for
condonation of its noncompliance with
the Uniform Rules of Court on
service and Rule 41A(2), thereby rendering the proceedings a nullity
and ineffective. The Municipality
stated that the applicant's tender,
which is the subject of this application, is tainted by fraud, and
that had this been known
at the time of the bid adjudication, the
tender would have been deemed non-responsive for this reason.
[16]
In addition, the Municipality averred that the two tenderers, namely
CHS Development CC and Ruwacon
(Pty) Ltd, who were recommended as the
first and the second alternative successful tenderers, ought to have
been joined in this
application, particularly concerning the relief
sought in Part B. The Municipality also questioned the fact that the
application
was served on the Municipality via email without
obtaining prior leave from this Court. The Municipality asserts that
the applicant
fails to explain why it could not have served the
application on the Municipality in accordance with Rule 4(1)(a) of
the Rules
of Court. Thus, due to the lack of proper service, the
Municipality contended that the applicant's application constitutes a
nullity
or ineffective and remains as such, irrespective of the
Municipality's notice to oppose and the subsequent filing of an
answering
affidavit.
[17]
According to the Municipality, the deponent to the applicant's
founding affidavit, Mr Mabasha,
refers to himself as the applicant in
this matter, notwithstanding his further averments that he is duly
authorised to depose to
the affidavit on behalf of the applicant and
the resolution attached to the founding affidavit. In the
Municipality's view, it
is evident from the content of the founding
affidavit and the explicit language employed by Mr Mabasha that his
assertion of being
the applicant carries weight as he consistently
makes statements throughout his affidavit that substantiate this
claim.
[18]
The Municipality stated that Mr Mabasha is not even a member of the
applicant. The sole member,
as indicated in the tender documents
submitted under the name of the applicant, is Fungelelani Mulaudzi.
The respondent stated
further that it appears the tender was
submitted under the name of the applicant under circumstances that
raise strong suspicion
that the applicant company has been used as a
front. Based on the information provided, the Municipality contends
that the applicant,
along with its sole member as reflected in the
CIPC records, was not the actual tenderer, contrary to what is stated
in the resolution
attached to the applicant's founding affidavit.
[19]
The Municipality referred the court to Clause C.2.14 of the Standard
Conditions of Tender, which
formed part of the returnable documents
that had to be submitted by all tenderers. It provided as follows:
The tenderer accepts that
tender offers which do not provide all the data of information
requested, completely and in the form required,
may be regarded by
the employers as non-responsive.
[20]
The Municipality asserted that the information supplied through the
CV of Mr Fhumulani, the applicant’s
Construction Manager, did
not comply with the dictates of clause C.2.14, and the tender was
found wanting for the reasons stated
in the report attached to the
Municipality's letter of 06 November 2024. The Municipality further
noted that from a perusal of
the CV of the applicant's Construction
Manager, it was patently clear that although the information
contained therein may have
been accurate, the applicant did not
comply with the tender requirements as it was incomplete, and his
construction experience
could not be verified by the Municipality.
[21]
The Municipality contended that the applicant's Construction
Manager's alleged experience for
the period 2004 to 2011 was
rightfully not considered as it could not be verified for reasons
stated in the adjudication report
following the applicant's objection
to awarding the tender to the fourth respondent.
[22]
In the said adjudication report, the Municipality stated that the
applicant had to comply with
paragraph 3 of the tender eligibility
criteria and provide evidence as follows:
(Construction Manager
(full time on site), suitably skilled and have a CV with verifiable
experience as foreman on building projects
with a minimum of ten
years experience).
In the report, the Municipality noted further
that the applicant submitted a CV of its Construction Manager as part
of its tender
document. The projects completed by the Construction
Manager were scrutinised by the Bid Evaluation Committee (BEC), and
although
the Construction Manager indicated 10 years of experience in
construction, his experience was divided into civil engineering,
maintenance
and building projects.
[23]
The BEC only identified eight years (8) of building construction
experience from the CV of the
applicant's Construction Manager, which
fell short of the threshold. The Municipality contended that for a
project to be relevant
for consideration as envisaged in paragraph 3
of the tender eligibility criteria, it had to be building works. The
BEC identified
building work experience completed by the applicant’s
Construction Manager in the period 2009, 2010, 2011, 2012, 2015,
2016,
2019 and 2020. To this end, it concluded that the applicant
failed to submit all the required information and could, therefore,
not be considered.
[24]
The Municipality stated that it dealt with the applicant's tender in
strict compliance with the
law. The Municipality further opined that
in failing to comply with the terms of the tender invitation, the
applicant has undoubtedly
brought about its own misfortune, and the
resulting issues are a direct consequence of its own actions. The
Municipality refuted
the allegation that it had deliberately
manipulated the tendering process to unlawfully favour another bidder
as untrue, devoid
of any factual basis, and defamatory.
[25]
Furthermore, the Municipality asserted that the completion of the
housing project for the Municipality's
constituency is of critical
urgency and cannot be hindered by an opportunistic attempt to revisit
the entire process, which was
conducted in full compliance with
constitutional requirements and the framework of the Public Finance
Management Act 1 of 1999.
[26]
According to the Municipality, the tender process fully complied with
the Five Pillars of Procurement
and reflects the Municipality's
commitment to exceeding the minimum standards required, ensuring the
highest levels of transparency,
fairness, and accountability in every
aspect. The Municipality denied that the applicant suffered any
prejudice from the Municipality's
decision.
[27]
The Municipality also impugned the urgency with which this
application was brought. It noted
that the application was issued 36
days after the applicant was informed of the decision and provided
with reasons for it. This
considerable delay demonstrates a lack of
urgency or diligence on the part of the applicant, undermining any
suggestion that immediate
relief is warranted. Furthermore, the
Municipality contended that any urgency pertaining to the matter is,
at best, for the applicant,
self-created.
[28]
In addition, the Municipality contended that the applicant was made
aware on 18 October 2024
of the urgency pertaining to the tender
through a letter from the Municipality informing it that the tender
had been awarded to
the fourth respondent. The applicant was further
appraised on 6 November 2024 that its objection to the award of the
tender to
the fourth respondent had been rejected and of the reasons
thereof.
[29]
The Municipality stated that on 13 November 2024, the applicant was
informed that the Municipality
upheld its decision to reject the
applicant's objection. Notwithstanding, the founding affidavit of the
applicant was only signed
on 11 December 2024, 28 days after 13
November 2024. Furthermore, the application was served through email
to the Municipality
on 12 December 2024. In its notice of motion, the
applicant gave the Municipality 6 days, including the long weekend,
to oppose
the matter and to serve and file its answering affidavit.
[30]
The Municipality further asserted that the completion of the project
is of critical urgency.
The fifty-five (55) days that have passed
since the applicant was informed that his bid was unsuccessful (on 18
October 2024) until
the issue of the founding papers (on 12 December
2024), in the context of this matter, represents an unreasonable and
unjustifiable
delay. In the Municipality’s view, given the
pressing nature of the project, any further postponement would be
detrimental
to the public interest and contrary to the principle of
effectiveness in procurement matters.
[31]
The Municipality explained that the reason the applicant gave for the
delay was that it was waiting
for the tender documents from the
Municipality so that it could attach them to its application.
According to the Municipality,
this explanation is feeble and
implausible. In light of the fact that the applicant proceeded to
institute this application without
the requisite tender documents,
the Municipality contends that this reason is merely an opportunistic
excuse.
[32]
The Municipality asserted that the applicant's delay in issuing the
application demonstrates
an evident lack of seriousness and an intent
to exploit the process rather than pursue it with diligence and
urgency. The Municipality
emphasised that the necessity of submitting
the application for interim relief at an earlier date than its
eventual filing is highlighted
by several important considerations,
namely: an amount of five (5) million allocated to the Municipality
by the Western Cape Government:
Department of Infrastructure for this
project, must be utilised by April 2025. Failure to do so, will
result in the reversion of
these funds to the Department, causing
significant financial loss and substantial delays in the completion
of the housing project.
[33]
Furthermore, the municipality is under severe pressure to complete
the project and execute its
constitutional mandate to provide
adequate housing for its constituents, particularly considering that
there are dire shortages
of housing in its jurisdiction. The granting
of an interim interdict at this stage will result in profound and
far-reaching prejudice,
not only by delaying the ability to meet its
constitutional obligation but also by prolonging the hardship faced
by its constituents
in desperate need of housing. Such a delay would
undermine the public interest and exacerbate the housing crisis in
the Municipality's
jurisdiction. The Municipality applied that the
applicant's application be dismissed with costs.
Preliminary
Issues
[34]
There are two main preliminary issues in this matter: one raised by
the applicant and the other
raised by the Municipality. Concerning
the first preliminary issue, the applicant contended that there is no
proper answering affidavit
before this Court as the deponent of the
answering affidavit, Ms Delia Power, the Acting Director of Human
Settlements, Planning
and Development and Management at the George
Municipality, lacks personal knowledge of the information deposed to
in the answering
affidavit.
[35]
The applicant asserted that a deponent is a witness who is testifying
about information they
have personal knowledge about. In the absence
of such personal knowledge, the information relayed becomes hearsay.
When one does
not have direct knowledge of the information, the
relevant person provides a confirmatory affidavit. In this case, the
applicant
contended that there is no confirmatory affidavit from the
relevant official; therefore, there is no proper answering affidavit
before this Court.
[36]
The second preliminary point is that of urgency raised by the
Municipality. The Municipality
argued that the urgency with which
this matter was brought was self-created, and the matter must be
struck off the roll on that
ground alone. For convenience, I will
deal with the applicant's preliminary point first. Thereafter, I will
consider the question
of urgency raised by the Municipality.
Is
the respondent's answering affidavit defective or proper?
[37]
In the answering affidavit, the Acting Director of Human Settlement,
Planning and Development
and Property Management at the George
Municipality asserted that she is duly authorised to depose to the
affidavit and to oppose
the application on behalf of the
Municipality. In addition, the deponent stated that the facts
contained therein do not fall within
her personal knowledge. However,
she has ascertained the correctness thereof from files pertaining to
this matter under her control
and supervision as Acting Director of
Human Settlements, Planning and Development on Property Management.
The deponent also averred
that she has further verified these facts
from information obtained from the officials of the Municipality who
are directly involved
in this matter. The deponent also stated that
she believes the information communicated to her to be true and
correct.
[38]
The deponent has been duly authorised to depose to the affidavit. She
has ascertained the correctness
of the facts relating to her
deposition from files pertaining to this matter under her control and
supervision as Acting Director
of Human Settlements, Planning and
Development on Property Management. Evidently, all the documents of
the Municipality are under
her control and supervision. In my view,
the deponent acquired direct knowledge of the facts of this case from
the perusal of documents
under her control.
[39]
As the Acting Director of Human Settlement, she held complete
possession and oversight of all
records and documents belonging to
the Municipality that are relevant to this application. These
materials form the basis of the
applicant's interdict application
against the respondents under the above case number. In my view, in
discharging her responsibility,
the deponent has thoroughly examined
and familiarised herself with these documents and records, ensuring
she has a comprehensive
understanding of their contents. She has
familiarised herself with the documents and records relating to this
application which
are under her control and supervision.
[40]
While I accept that the information obtained from officials of the
Municipality who are directly
involved in this matter on the face of
it amounts to hearsay evidence without their confirmatory affidavit,
however, I am of the
view that such information was verified and
confirmed by the deponent from the documents in her control and found
to be true and
correct. The nature of the deponent's occupation
suggests very strongly that she would, in the ordinary course of her
duties, acquire
personal knowledge of the Municipality's tender
documents and all tenders submitted during the tender process.
[41]
Furthermore, formalism and an inflexible approach should be avoided
in a case like this. The
deponent to the respondent's affidavit
represents the Municipality. The Municipality represents its
constituency. A rigid approach
in this regard would be detrimental to
public interests. The Municipality is currently experiencing
considerable pressure to complete
the project to fulfil its
constitutional mandate of providing housing for its constituents.
This urgency is underscored by the
critical housing shortage within
its jurisdiction, as highlighted by the Acting Manager. In the
circumstances, I am of the opinion
that the applicant's preliminary
point must fail. I will now turn my attention to the issue of
urgency.
Urgency
[42]
The legal principles applicable to the question of urgency are
well-established in our law. The
test for urgency emanates from the
provisions of Rule 6(12) of the Uniform Rules. Rule 6(12) confers
courts with a wide discretion
to decide whether an application
justifies enrolment on the urgent court roll based on the facts and
circumstances of each case.
[1]
An application is urgent when an applicant cannot obtain substantial
redress at a hearing in due course.
[2]
The degree of departure from the modes of service and time frame in
the Uniform Rules must be commensurate with the urgency in
each
case.
[3]
[43]
It is important to point out that an applicant must explicitly set
forth the circumstances that
he believes render the matter urgent and
the reasons why he claims that he cannot be afforded substantial
redress at the hearing
in due course. Simply put, an application is
urgent when an applicant cannot obtain substantial redress in due
course.
[4]
An applicant must
strictly comply with the requirements of rule 6(12)(b), including
explicitly demonstrating the urgency of the
matter and explaining why
substantial redress cannot be obtained later.
[44]
The Municipality challenged the urgency and the truncated timeframe
with which this application
was brought. The Municipality contended
that the delay is so unreasonable and demonstrates a lack of
diligence on the part of the
applicant, undermining any suggestion
that immediate relief is warranted. According to the Municipality,
the explanation advanced
by the applicant for its delay in bringing
this application is feeble and insubstantial.
[45]
The reason for the delay advanced by the applicant is that the
applicant requested its tender
documents from the Municipality as it
wished to use these documents in the urgent application. According to
the applicant, no response
was forthcoming. In addition, the
applicant submitted that on 13 November 2024, it received a response
holding that the Municipality
stands by its decision to reject the
applicant's tender bid. Subsequently, the applicant sought legal
assistance. The applicant
obtained legal advice to pursue the matter.
On 25 November 2024, Matamela Enterprise CC (the applicant) gave the
deponent of the
founding affidavit the go-ahead to institute these
legal proceedings.
[46]
Mr Mpya, the applicant’s Counsel argued in his written
submission that Review applications
by their very nature are urgent
as they involve the fundamental principle of the rule of law and
constitutional principle of just
administrative action enshrined in
section 33 of the Constitution. Counsel submitted that this is a
classic urgent case that warrants
the immediate attention of this
Court more so because the Municipality has shown an appetite to
litigate as the applicant was duly
invited to sue them. Respectfully,
I do not agree with this proposition. Whatever the nature of the
claim, there must be some reason
why the applicant will not be able
to protect or advance their legal rights later, unless they are given
specific relief now.
[47]
In
Volvo
Financial Services Southern Africa (Pty) Ltd v Adamas Tkolose Trading
CC,
[5]
the court stated, and correctly so, in my view, as follows:
“
[6] There is,
accordingly, no class of proceeding that enjoys inherent preference.
Counsel appearing in urgent court would, in my
view, do well to put
the concept of “inherent urgency” out of their minds.
There are, of course, some types of cases
that are more likely to be
urgent than others. The nature of the prejudice an applicant will
suffer if they are not afforded an
urgent hearing is often linked to
the kind of right being pursued. Spoliation is a classic example of
this type of claim. Provided
that the person spoliated acts promptly,
the matter will nearly always be urgent. The urgency does not,
though, arise from the
nature of the case itself, but from the need
to put right a recent and unlawful disposition. The applicant comes
to court because
they wish to restore the ordinary state of affairs
while a dispute about the right to possess a thing works itself out.
Cases involving
possible deprivations of life and liberty, threats to
health, the loss of one’s home or some other basic essential of
daily
life, such as water or electricity, destruction of property, or
even crippling commercial laws are also likely to be urgent.
[8] The fundamental point
is that a matter is urgent because of the imminence and depth of harm
that the applicant will suffer if
relief is not given, not because of
the category of right the applicant assets.”
[48]
The reasons provided by the applicant for the delay in filing this
application are deficient
and unconvincing. As Mr van der Merwe, the
respondent's Counsel, aptly noted, the applicant took 40 days to
submit its application
after being informed of the reasons behind the
Municipality's decision. Although the applicant stated that it was
waiting for the
tender documents from the Municipality, the applicant
instituted this application without having the relevant tender
documents.
The claim that the applicant could not apply in a timely
manner due to awaiting the tender documents is contradicted by the
fact
that the application was submitted without these documents.
[49]
From the evidence filed, the applicant was informed on 18 October
2024 that its tender was unsuccessful
and that the fourth respondent
was nominated as the successful bidder. Pursuant thereto, the
applicant submitted its objection
to the award on the 1 November
2024, the last day of the 14-day objection period. The Municipality
expeditiously responded to the
applicant’s objection on 6
November 2024 with its reasons for the finding that the applicant’s
tender was found to
be non-responsive. Notwithstanding the
Municipality’s response with reasons, on 11 November 2024, the
applicant submitted
a further letter requesting reasons pertaining to
its Construction Manager. On 13 November 2024, the Municipality
informed the
applicant that a thorough explanation was provided in
its letter dated 6 November 2024 and that the Municipality stood by
its previous
decision and deem the decision final.
[50]
The applicant thereafter waited a month and subsequently brought this
application on an urgent
basis with truncated timelines. As explained
above, the main reason for the delay was that the applicant was
waiting for the tender
documents from the municipality. Importantly,
in its replying affidavit, it became clear that the request to the
Municipality for
the tender documents was only made via email on 09
December 2024. The applicant waited from 13 November 2024 and
proceeded to issue
these proceedings urgently on 12 December 2024.
[51]
I repeat, these proceedings were instituted even before the tender
documents were provided to
the applicant. As the Municipality rightly
noted, the applicant chose to move forward with the application
without having the tender
documents. Therefore, the claim that the
delay was due to waiting for the tender documents appears to be
opportunistic. In my opinion,
the applicant unreasonably delayed in
bringing this application. The applicant has not provided a full
explanation, nor a reasonable
one, for the delay in launching this
application. Our courts have repeatedly held that an unexplained
delay in urgent proceedings
is an indicator of self-created
urgency.
[6]
[52]
This considerable delay demonstrates a lack of urgency or diligence
on the part of the applicant
and undermines any suggestion that
immediate relief is warranted. More so, the reasons provided for the
delay are so flimsy. In
fact, the delay, in my view, is self-created.
The applicant had to bring its application at the first available
opportunity, and
its failure to do so diminished urgency.
[7]
Our courts have more than once made it clear that self-created
urgency ought not to be entertained.
[8]
[53]
In summary, the applicant's explanation for the delay is wholly
inadequate. The applicant has
failed to provide a full explanation
for the significant delay in instituting this application on an
urgent basis. The urgency
asserted by the applicant is entirely a
self-created urgency.
[9]
There is no good reason provided for the applicant’s failure to
bring this application earlier.
Accordingly, this application should ordinarily be struck from the
roll.
The
Applicant’s Application on the Merits
[54]
Normally, the finding regarding urgency would typically lead to the
applicant's interdictory
application being struck off the roll.
However, for the sake of completeness and certainty on the issues
raised, I will consider
the applicant’s application on the
merits. The applicant seeks an interdict against the Municipality,
pending the review
application in Part B. The traditional formulation
of the requirements for an interim interdict is that the applicant
must establish
(
a
)
a prima facie right (
b
)
a reasonable apprehension of irreparable harm if the interdict is not
granted, (
c
)
the balance of convenience must favour the grant of the interdict,
and (
d
)
the applicant must have no other remedy.
[10]
Prima
facie right
[55]
In determining whether a
prima
facie
right has been established, the right need not be shown by a balance
of probabilities. If it is prima facie established, though
open to
some doubt, that is sufficient.
[11]
The Court has a general and overriding discretion whether to grant or
refuse an application for interim relief. In the present
matter, in
the founding affidavit, the applicant asserted a prima right to
protect and enforce its right to a fair administrative
action and the
right to review the administrative decision of the Municipality.
[56]
According to the applicant, the administrative action taken by the
Municipality was unfair and
unreasonable and must thus be reviewed to
protect the applicant's right in terms of section 33 of the
Constitution read with PAJA.
The applicant also argues that it has
demonstrated strong prospects of success in its review application in
part B and possesses
significantly more than a prima facie right to
the relief sought. Additionally, the applicant emphasises that its
construction
manager has over 10 years of relevant experience, which
is a requirement for the tender. The applicant believes it was
unjustly
denied the tender because the Municipality failed to
consider the Construction Manager's experience gained between 2004
and 2011.
[57]
I have considered the applicant's submission and meticulously
examined the tender documents the
applicant presented to the
Municipality. In addition, I have also considered all the tender
requirements established by the Municipality
for the tender to be
deemed responsive. In light of this analysis, I agree with the
Municipality's contention that the applicant
has, in essence,
orchestrated its own misfortune. The applicant failed to adequately
disclose the full years of experience of its
Construction Manager.
[58]
It may be so that the applicant's Construction Manager has 17 years
of experience, as stated
in the confirmatory affidavit filed with
this application, which exceeds the Municipality's threshold of 10
years. However, there
are concerns regarding his construction work
experience, which is set out in his CV for 2004 and 2011. The
evidence from the applicant's
tender documents indicates that the
applicant's Construction Manager only had 8 years of experience
during that timeframe, falling
short of the required threshold. The
applicant did not adequately disclose the necessary information for
this period as specified
in the terms of the tender. As a result,
this lack of proper and efficient disclosure has hindered the ability
of the evaluation
committee to effectively verify the Construction
Manager's experience. This deficiency cannot be attributed to the
Municipality.
[59]
For clarity, the applicant states that various building works were
conducted between 2004 and
2011. The applicant has listed the
different projects that its Construction Manager managed during this
time. Specifically, the
applicant claims that between 2004 and 2011,
the Construction Manager worked on projects including, amongst
others, Bombela CJV,
Pilanesberg Platinum Mine, building works at the
Johannesburg High Court, and construction at Soshanguve South.
However, the timeline
for this work is unclear, as the CV does not
specify when each piece was performed. It remains ambiguous whether
the various work
was completed in the same year or if they were done
in 2008, 2009, or 2010. This information is not easily verifiable
from the
CV.
[60]
In my opinion, for the applicant’s tender to be considered
responsive and to meet the eligibility
criteria, it should have
clearly outlined when the relevant work was performed between 2004
and 2011. This clarity would have facilitated
the BEC's assessment of
the experience of the applicant’s Construction Manager. The
generalisation of the Construction Manager's
experience in the tender
documents (CV) made it challenging for the Municipality's BEC to
verify his experience. Therefore, the
Municipality cannot be faulted
or held responsible for the applicant's ineptness. To this end, I
agree with the contention made
in the Municipality’s answering
affidavit that the applicant’s tender documents failed to
explicitly disclose the necessary
information for the period 2004 to
2011 as required by the terms of the tender which prevented the
verification of the Construction
Manager’s experience.
[61]
The applicant has submitted a confirmatory affidavit from its
Construction Manager, stating that
he has 17 years of experience. In
the applicant's application, particularly in the replying affidavit,
the applicant seeks an order
for the interdict to be granted so that
the experience of its Construction Manager can be properly
re-evaluated. The applicant
believes that re-evaluating the
Construction Manager's CV will not take long and that resolving this
matter speedily will allow
the Municipality to plan effectively. I do
not agree with this submission.
[62]
This tender affects 200 recipients of homes along with their
families. The Municipality has indicated
that the five million
allocated to it by the Western Cape Government's Department of
Infrastructure for this project must be utilised
by 30 April 2025.
Failure to do so will result in these funds being returned to the
Department, leading to significant financial
loss and substantial
delays in the completion of the housing project. In its answering
affidavit, the Municipality stated that
it is under considerable
pressure to complete the project to fulfill its constitutional
mandate to provide adequate housing for
its constituents, especially
given the severe housing shortage within its jurisdiction.
[63]
In my opinion, the Municipality cannot be held responsible for the
applicant's incompetence or
sloppiness. Given the circumstances, I
believe that granting an interim interdict at this stage would lead
to significant and far-reaching
consequences. It would not only
hinder the Municipality's ability to fulfill its constitutional
obligations but also prolong the
hardships faced by its residents who
are desperately in need of housing. Such a delay would undermine the
public interest and worsen
the housing crisis within the
Municipality's jurisdiction. In this context, the Constitutional
Court has repeatedly emphasised
that Courts must be astute in not
usurping the functions of administrative bodies. The Court stated:
“
In treating the
decisions of administrative agencies with appropriate respect, a
Court is recognising the proper role of the Executive
within the
Constitution. In doing so a Court should be careful not to attribute
to itself superior wisdom in relation to matters
entrusted to other
branches of government. A Court should thus give due weight to
findings of fact and policy decisions made by
those with special
expertise and experience in the field.”
[12]
Irreparable
Harm
[64]
The applicant is obliged to demonstrate that it has a well-grounded
apprehension of irreparable
harm if the interim relief is not
granted. In this instance, the applicant contends that the actions of
the Municipality have resulted
in significant suffering and detriment
to the applicant, as the experience of its Construction Manager was
not adequately assessed.
Moreover, the applicant argues that the
failure to consider the Construction Manager's extensive experience,
which exceeds ten
years, has disproportionately affected the
applicant's prospects of success. The applicant maintains that,
should the court fail
to review and set aside the tender, it will
incur further prejudice.
[65]
I must stress that ever since the decision of the Constitutional
Court in
National
Treasury and Others v Opposition to Urban Tolling Alliance and
Others
,
[13]
(‘
OUTA
’),
an applicant cannot merely rely on a right of review because review
rights do not require any preservation
pendente
lite
.
To succeed with interim interdictory relief, some rights other than a
right to review must be threatened with irreparable harm.
[14]
Simply put; to obtain a temporary interdict, it is no longer enough
for an applicant to contend that it has a good review case.
In terms
of
OUTA,
the prima facie right that an applicant must establish is not merely
the right to approach a court to review an administrative
decision.
It is a right to which irreparable harm will ensue if not protected
by an interdict. For completeness, in paragraph 50,
the court stated:
“
An
interdict is meant to prevent future conduct and not decisions
already made. Quite apart from the right to review and to set
aside
impugned decisions, the applicants should have demonstrated a prima
facie right
that is threatened by an impending or imminent
irreparable harm
. The right to
review the impugned decisions did not require any preservation
pendente lite.
”
(my
emphasis).
[66]
In
Khoin
and Others v Jenkins and Others and a related matter,
[15]
the full court of this Division applied
OUTA
to an application for a construction interdict. It held that
‘protecting the right to review the unlawful decisions cannot
form the basis for interim relief’.
[16]
The court noted that to interdict building work pending a review, a
prima facie right is not established merely if grounds of review
show
prospects of success. The full court found that an applicant for a
construction interdict must now satisfy the jurisdictional
requirement of demonstrating that the development will irreparably
harm a substantive right other than the right to review.
[67]
Applying these principles to the present case, I am of the view that
the applicant is not entitled
to an interim interdict as it has
failed to show that its rights are subject to imminent or irreparable
harm even if the review
ultimately succeeds as contemplated in
OUTA.
As stated above, an applicant cannot rely on the right of review
because review rights do not require any preservation
pendente
lite
. In
Greenpoint Residence and Ratepayers Association and
Others v Gartner and Others (supra
– note 14
)
the
court stated that there could be no consideration of irreparable harm
without a prima facie right to be protected from future
irreparable
harm. In my view, the applicant has not shown a prima facie right to
be protected from future harm.
The
balance of convenience
[68]
In determining the balance of convenience, the court must assess the
harm that the Municipality
may suffer if the interim order is granted
with the prejudice the applicant will face if it is refused. In
addition, in a case
such as this, the balance of convenience inquiry
must thoroughly probe whether and to what extent the restraining
order will probably
intrude into the exclusive terrain of another
branch of government. The enquiry must properly regard what may be
called separation
of powers harm.
[17]
[69]
It is common cause that the Municipality has the constitutional and
statutory mandate and authority
to provide housing for its residence
within its jurisdiction. In my view, the granting of an interdict
against the Municipality,
in this case, has the potential to
frustrate the development of houses to the prejudice of the
Municipality's Constituency. An
interdict sought by the applicant
will affect the discharge of the Municipality's constitutional
developmental duty as envisaged
in sections 152(1)(c) and 153 of the
Constitution. I am of the view that the balance of convenience does
not favour the applicant
for the granting of an interim interdict.
Furthermore, there is no imminent irreparable harm that the applicant
would suffer if
the interim interdict is not granted.
Alternative
remedy
[70]
The applicant, in my view, has an alternative remedy. The review
application is the applicant’s
alternative remedy. Should the
applicant be able to establish reviewable irregularities in Part B of
this application, the review
court will be able to grant suitable
remedies to protect the applicant’s rights.
Conclusion
[71]
Given all these considerations, I am of the view that the applicant
has not demonstrated an entitlement
to an interim interdict.
Therefore, the applicant's application for an interim interdict must
fail.
Costs
[72]
As far as the issue of costs is concerned, it is trite that a court
considering an order of costs
exercises a discretion and that the
court’s discretion must be exercised judicially.
[18]
In
this case, there are no reasons advance for a departure from the
normal rule that costs follow the event. The applicant must
pay the
costs of this application.
Order
[73]
In the result, the following order is granted:
73.1
The applicant’s application is hereby dismissed.
73.2 The
applicant is ordered to pay the costs of this application, including
the costs of Counsel on scale B.
LEKHULENI
JD
JUDGE
OF THE HIGH COURT
APPEARANCES
For
the Applicant: Adv Mpya
Instructed
by: Tshivhase Attorneys Inc
For
the first Respondent (the Municipality): Adv van der Merwe
Instructed
by: Le Roux Lamprecht Inc
[1]
Mogalakwena
Local Municipality v Provincial Executive Council, Limpopo
[2014] 4 AII 67 (GP) at para 63;
Caledon
Street Restaurants CC v D’ Aviera
1998 JDR 0116 (SE) at 8.
[2]
Dlamini
v City Manager of the City of Ekurhuleni Metropolitan Municipality
[2023] ZAGPJHC 147 at para 27.
[3]
Republikeinse
Publikasie (edms) Bpk v Afrikaanse Pers Publikasie (edms) Bpk
1972 (1) SA 773
(A) at 782A-G.
[4]
Dlamini
v City Manager of the City of Ekurhuleni Metropolitan Municipality
[2023] ZAGPJHC 147 at para 27.
[5]
(2023/067290) [2023] ZAGPJHC 846 (1 August 2023).
[6]
See
Big
Blue Marketing CC v King Sabata Dalindyebo Local Municipality
2017 JDR 0302 (ECM) at para 10;
Windsor
Hotel (Pty) Ltd v New Windsor Properties (Pty) Ltd
2013 JDR 1989 (ECM) at para 9.
[7]
Mhonko’s
Security Services CC v City of Cape Town
(21132/2018)
[2018] ZAWCHC 168
(30 November 2018) at para 13.
[8]
South
African Social Security Agency v Minister of Social Development
2018 (10) BCLR 1291
(CC) at para 19;
Metbank
Limited v Absa Bank Limited
(59303/2021) [2022] ZAGPJHC 6 (4 January 2022) at para 10.
[9]
Big
Blue Marketing CC v King Sabata Dalindyebo Local Municipality
2017 JDR 0302 (ECM) at para 10;
Windsor
Hotel (Pty) Ltd v New Windsor Properties (Pty) Ltd
2013 JDR 1989 (ECM) at para 9.
[10]
Olympic
Passenger Service (Pty) Ltd v Ramlagan
1957
(2) SA 382
(D) at 383A-C;
Pietermaritzburg
City Council v Local Road Transportation Board
1959 (2) SA 758
(N) at 772C-E).
[11]
Webster
v Mitchell
1948 (1) SA 1186
(W) at 1189;
Knox-D’Arcy
Ltd v Jamieson
1995 (2) SA 579
(W) at 592H – 593B.
[12]
Bato
Star Fishing (Pty) Ltd v Minister of Environmental Affairs
[2004] ZACC 15
;
2004 (4) SA 490
(CC) at para 48.
[13]
2012 (6) SA 223
(CC).
[14]
Green
Point Residents’ and Ratepayers Association and Others v
Gartner and Others
(4859/2024)
[2024] ZAWCHC 252
(10 September 2024).
[15]
Khoin
and others v Jenkins and others and a related matter
[2023] 1 All SA 110 (WCC).
[16]
Khoin
and others v Jenkins and others and a related matter
(supra)
at
para 43.
[17]
See
National
Treasury and Others v Opposition to Urban Tolling Alliance and
Others
2012 (6) SA 223
(CC) para 47).
[18]
F
erreira
v Levin NO and Others; Vreyenhoek and Others v Powell NO and Others
[1996] ZACC 27
;
1996
(2) SA 621
(CC);
Motaung
v Makubela and Another, NNO; Motaung v Mothiba NO
1975
(1) SA 618
(O) at 631A.
sino noindex
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